Senator Durbin (D-IL) Proposes Internet Tax
Just watch as they wait until after tax day to propose adding new taxes, and then come out swinging, singing that timeless classic, "Unfair Advantage".
Call me naive here, but if a "State Sales Tax" can effectively extend itself to the point where it applies to sales made outside of that state, then why stop at sales made in other states? Why not apply a "State Sales Tax" to purchases made internationally? Or in U.S. territories? Maybe IL should start taxing everything its citizens buy while vacationing in Puerto Rico and call it an "Illinois State Sales Tax". If I sit here in Illinois and buy something from TX via a website, how has the government of Illinois participated in that sale? And why should it get some of that money?
The proposal--expected to be made public soon after Tax Day--would rewrite the ground rules for Internet and mail order sales by eliminating the ability of Americans to shop at Web sites like Amazon.com and Overstock.com without paying state sales taxes.
Dick Durbin of Illinois, the second most senior Senate Democrat, will introduce the bill after the Easter recess, a Democratic aide told CNET.
"Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?" Durbin said in a speech in Collinsville, Ill., in February. "Out-of-state companies that aren't paying their fair share of taxes are sticking Illinois residents and businesses with the tab."
The argument they make, and you can be the judge of its validity, is that online retailers who have brick-and-mortar stores or partnerships in Illinois, must charge sales tax, even if the order itself doesn't get filled by a brick-and-mortar store or partner physically located in Illinois, but gets filled by a brick-and-mortar store from another state. The result? It kills jobs. For instance, after Illinois itself passed its own version of this Internet Tax in March (Durbin is simply proposing the Federal Government pass the same law), Amazon.com is now pulling out of its 9,000 affiliations with Illinois businesses. Those brick-and-mortar stores will lose about 25% of their sales, and they will now have to consider cutting jobs or close up shop. More people go on Welfare, loose their house, can't afford to buy things, and the Big-Government party wins once again.
Staying true to the typical Liberal Politicians' way of "selling" such legislation by publicly stating that it will do the opposite of what it will actually do, thus accomplishing what even his opponents (more conservative people) would want, Illinois Governor Pat Quinn drew from some knowledge-base existing very far outside of Basic Laws of Economics, carefully filled himself up with buzzwords, and then spit them out as he explained the glorious virtues of Illinois's new Internet Tax law:
“Illinois’ main street businesses are critical to ensuring our long-term economic stability, which is why they must be able to compete with every company doing business online in Illinois,” said Quinn. “This law will put Illinois-based businesses on a level playing field, protect and create jobs and help us continue to grow in the global marketplace.”
-Illinois Governor Pat Quinn